Regulatory Alerts2023-11-29
Added
DFIM Circular Letter No. 25: Interest/Profit Rate of Deposit and Loan/Lease/Investment
The document establishes the maximum interest or profit rates for deposits and loans, leases, or investments for finance companies operating in Bangladesh. Specifically, the maximum rate for deposits is set at BDT + 2.75%, and the maximum rate for loans, leases, or investments is set at BDT + 5.75%. These directives apply to newly collected deposits and distributed loans issued after the circular's release and take effect immediately under Section 41(2)(d) of the Finance Company Act, 2023.
Department of Financial Institutions and Markets Bangladesh Bank Head Office Dhaka. Ref No.: DFIM Circular Letter No. 25 To: Managing Director/Chief Executive Officer All Finance Companies Operating in Bangladesh.
Dear Sir,
Subject: Interest/Profit Rate of Deposit and Loan/Lease/Investment.
Reference is drawn to your attention to DFIM Circular No. 07, dated: 20 June 2023 and DFIM Circular Letter No. 21, dated: 08 October 2023 on the subject matter above.
-
Considering the existing financial policy rates, the interest/profit rates for deposits and loans of finance companies shall be determined as follows: (a) The maximum interest/profit rate for deposits shall be BDT + 2.75%; and (b) The maximum interest/profit rate for loans/leases/investments shall be BDT + 5.75%.
-
The instructions of paragraph 2 above shall apply to newly collected deposits and distributed loans from the date of issuance of this circular.
-
In addition, all other instructions of DFIM Circular No. 07/2023 and DFIM Circular Letter No. 21/2023 shall remain unchanged.
These instructions are issued under the power granted by Section 41(2)(d) of the Finance Company Act, 2023, and shall take effect immediately.
Yours faithfully,
(Md. Asaduzzaman Khan) Director (DFIM) Phone: 9530178.
Date: 14 Agrahayan 1430 29 November 2023